Concrete Pumping Holdings Announces Closing of Senior Secured Second Lien Notes Offering
Concrete Pumping Holdings (BBCP) announced the successful closing of a $425.0 million senior secured second lien notes offering through its subsidiary Brundage-Bone Concrete Pumping Holdings. The notes, due 2032, were issued at par with a 7.500% fixed annual interest rate.
The proceeds will be used to redeem all outstanding 6.000% senior secured second lien notes due 2026 and pay related fees. Additionally, the remaining proceeds, combined with cash on hand, will fund a special one-time dividend of $1.00 per share (approximately $53 million total) to be paid on February 3, 2025.
CEO Bruce Young highlighted that this refinancing strengthens their balance sheet and demonstrates their consistent operating performance and healthy free cash flow generation. The company maintains its commitment to various capital allocation priorities while ensuring prudent leverage and liquidity for long-term growth.
Concrete Pumping Holdings (BBCP) ha annunciato la chiusura con successo di un'offerta di note di secondo grado senior garantite per 425,0 milioni di dollari attraverso la sua controllata Brundage-Bone Concrete Pumping Holdings. Le note, che scadranno nel 2032, sono state emesse al valore nominale con un tasso d'interesse annuale fisso del 7,500%.
I proventi saranno utilizzati per rimborsare tutte le note di secondo grado senior garantite al 6,000% in scadenza nel 2026 e per pagare le relative spese. Inoltre, i proventi rimanenti, combinati con la liquidità disponibile, finanzieranno un dividendo speciale una tantum di 1,00 dollaro per azione (circa 53 milioni di dollari in totale) che sarà pagato il 3 febbraio 2025.
Il CEO Bruce Young ha sottolineato che questo rifinanziamento rafforza il loro bilancio e dimostra la loro costante performance operativa e una generazione di flusso di cassa libero sana. L'azienda mantiene il suo impegno verso varie priorità di allocazione del capitale garantendo al contempo un'opportuna leva finanziaria e liquidità per una crescita a lungo termine.
Concrete Pumping Holdings (BBCP) anunció el cierre exitoso de una oferta de notas de segundo grado senior aseguradas por 425,0 millones de dólares a través de su subsidiaria Brundage-Bone Concrete Pumping Holdings. Las notas, que vencerán en 2032, se emitieron a la par con una tasa de interés anual fija del 7,500%.
Los ingresos se utilizarán para rescatar todas las notas de segundo grado senior aseguradas al 6,000% que vencen en 2026 y para pagar las tarifas relacionadas. Además, los ingresos restantes, combinados con el efectivo disponible, financiarán un dividendo especial único de 1,00 dólar por acción (aproximadamente 53 millones de dólares en total) que se pagará el 3 de febrero de 2025.
El CEO Bruce Young destacó que este refinanciamiento fortalece su balance y demuestra su rendimiento operativo constante y la generación saludable de flujo de caja libre. La empresa mantiene su compromiso con diversas prioridades de asignación de capital mientras asegura un uso prudente del apalancamiento y liquidez para el crecimiento a largo plazo.
콘크리트 펌핑 홀딩스 (BBCP)는 자회사인 브런다지-본 콘크리트 펌핑 홀딩스를 통해 4억 2,500만 달러 규모의 2순위 고정 이율 채권 발행을 성공적으로 마감했다고 발표했습니다. 이 채권은 2032년 만기가 도래하며, 연 7.500%의 고정 이자율로 발행되었습니다.
수익금은 2026년 만기가 도래하는 모든 6.000%의 2순위 고정 이율 채권을 상환하고 관련 수수료를 지불하는 데 사용될 것입니다. 또한, 남은 수익금은 보유 현금과 함께 2025년 2월 3일에 주당 1.00달러(총 약 5,300만 달러)의 특별 일회성 배당금을 지급하는 데 사용될 것입니다.
CEO 브루스 영은 이번 재융자가 그들의 재무 구조를 강화하고 지속적인 운영 성과와 건전한 자유 현금 흐름 창출을 보여준다고 강조했습니다. 회사는 다양한 자본 배분 우선 사항에 대한 의지를 유지하면서 장기 성장에 필요한 신중한 레버리지와 유동성을 보장합니다.
Concrete Pumping Holdings (BBCP) a annoncé la clôture réussie d'une offre de billets de deuxième niveau garantis pour un montant de 425,0 millions de dollars par l'intermédiaire de sa filiale Brundage-Bone Concrete Pumping Holdings. Les billets, qui arriveront à échéance en 2032, ont été émis à la valeur nominale avec un taux d'intérêt fixe annuel de 7,500 %.
Les produits seront utilisés pour rembourser tous les billets de deuxième niveau garantis à 6,000 % arrivant à échéance en 2026 et pour payer les frais associés. De plus, les produits restants, combinés aux liquidités disponibles, permettront de financer un dividende exceptionnel unique de 1,00 dollar par action (environ 53 millions de dollars au total) qui sera versé le 3 février 2025.
Le PDG Bruce Young a souligné que ce refinancement renforce leur bilan et démontre leur performance opérationnelle constante ainsi que la génération saine de flux de trésorerie disponibles. L'entreprise maintient son engagement envers diverses priorités d'allocation du capital tout en assurant un levier et une liquidité prudents pour une croissance durable à long terme.
Concrete Pumping Holdings (BBCP) gab den erfolgreichen Abschluss eines Angebots über 425,0 Millionen US-Dollar an besicherten nachrangigen Anleihen bekannt, das über ihre Tochtergesellschaft Brundage-Bone Concrete Pumping Holdings durchgeführt wurde. Die Anleihen, die 2032 fällig werden, wurden zum Nennwert mit einem festen jährlichen Zinssatz von 7,500 % ausgegeben.
Die Erlöse werden verwendet, um alle offenen 6,000 % besicherten nachrangigen Anleihen, die 2026 fällig werden, einzulösen und die damit verbundenen Gebühren zu bezahlen. Darüber hinaus werden die verbleibenden Erlöse zusammen mit verfügbaren Zahlungsmitteln eine einmalige Sonderdividende von 1,00 US-Dollar pro Aktie (insgesamt etwa 53 Millionen US-Dollar) finanzieren, die am 3. Februar 2025 ausgeschüttet wird.
CEO Bruce Young hob hervor, dass diese Refinanzierung ihre Bilanz stärkt und deren konstante Betriebsleistung sowie die gesunde Erzeugung von freiem Cashflow demonstriert. Das Unternehmen setzt sein Engagement für verschiedene Kapitalallokationsprioritäten fort und sorgt gleichzeitig für eine angemessene Verschuldung und Liquidität für langfristiges Wachstum.
- Successfully raised $425 million through senior secured notes offering
- Announced special dividend of $1.00 per share (~$53 million total)
- Improved interest rate management by refinancing 6.000% notes with 7.500% notes
- Maintains strong free cash flow generation and healthy balance sheet
- Higher interest rate on new notes (7.500% vs previous 6.000%)
- Increased debt burden with $425 million new notes
Insights
The successful completion of CPH's
The announcement of a
From a balance sheet perspective, the transaction demonstrates sophisticated liability management. While the higher interest rate will impact cash flow, the extended maturity profile to 2032 provides significant runway for strategic initiatives. The company's ability to execute this refinancing in the current high-rate environment, while maintaining prudent leverage ratios, indicates strong underlying business fundamentals and market confidence in their operational model.
The strategic significance lies in CPH's balanced approach to capital allocation. By maintaining "ample liquidity" post-dividend, they preserve flexibility for future growth opportunities while signaling to the market that their cash flow generation capabilities exceed their immediate operational needs. This refinancing positions CPH for sustained growth while establishing a precedent for shareholder returns, potentially indicating a mature phase in their corporate evolution.
Debt Refinancing Supports Previously Announced
DENVER, Feb. 03, 2025 (GLOBE NEWSWIRE) -- Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the “Company” or “CPH”), a leading provider of concrete pumping and concrete waste management services in the U.S. and U.K., announced that Brundage-Bone Concrete Pumping Holdings, Inc. (the “Issuer”), a wholly-owned subsidiary of the Company, has successfully closed its private offering of
The proceeds of the Notes were used to pay the redemption price for all of the Company’s outstanding
“The closing of our senior notes refinancing strengthens our balance sheet and represents a significant milestone in our evolution, underscoring our consistent operating performance and healthy free cash flow generation,” said Bruce Young, CEO of CPH. “In the past, we have executed a range of capital allocation priorities, including organic growth investments in our concrete pumping fleet and Eco-Pan, opportunistic M&A, debt reduction and share buybacks. Now, returning excess capital to our shareholders in the form of a special dividend augments our capital allocation strategy and highlights our commitment to driving superior shareholder value. The special dividend also reflects our confidence in the Company’s strong and consistent free cash flow generation, all while maintaining prudent leverage and ample liquidity to invest in our long-term growth strategy.”
The Notes have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States or to any U.S. persons absent registration under the Securities Act, or pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes were offered and sold only to “qualified institutional buyers” in the United States pursuant to Rule 144A of the Securities Act or, outside the United States, to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act.
About Concrete Pumping Holdings
Concrete Pumping Holdings is a leading provider of concrete pumping services and concrete waste management services in the U.S. and U.K. markets based on fleet size, primarily operating under what we believe are the only established, national brands in both geographies – Brundage-Bone Concrete Pumping, Inc. for concrete pumping in the U.S., Camfaud Group Limited in the U.K., and Eco-Pan, Inc. for waste management services in both the U.S. and U.K. The Company’s large fleet of specialized pumping equipment and trained operators position it to deliver concrete placement solutions that facilitate substantial labor cost savings to customers, shorten concrete placement times, enhance worksite safety and improve construction quality. Highly complementary to its core concrete pumping service, Eco-Pan provides a full-service, cost-effective, regulatory-compliant solution to manage environmental issues caused by concrete washout. As of October 31, 2024, the Company provided concrete pumping services in the U.S. from a footprint of approximately 90 locations across 22 states, concrete pumping services in the U.K. from 35 locations, and route-based concrete waste management services from 20 locations in the U.S. and one shared location in the U.K.
Important Notice Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terminology such as “expect,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements are based on management’s reasonable current assumptions, expectations and plans regarding the Company’s and the Issuer’s current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks and uncertainties, including the Company’s ability to execute on its strategic growth plan and other factors disclosed in the risk factor sections of the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC, any of which may cause the actual results, levels of activity, performance or achievement of the Company or the Issuer to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management’s expectations. Therefore, you should not rely on any of these forward-looking statements as predictors of future events.
All forward-looking statements contained in this release are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date they are or were made, and the Company does not intend to update or otherwise revise the forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.
Contact:
| Company: Iain Humphries Chief Financial Officer 1-303-289-7497 | Investor Relations: Gateway Investor Relations Cody Slach 1-949-574-3860 BBCP@gatewayir.com |
FAQ
What is the value and interest rate of BBCP's new senior secured notes offering?
When will BBCP pay the $1.00 special dividend to shareholders?
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